2 Changes to the Roth IRA

2010 was a big year for the ROTH IRA. A new law went into effect that ensured that Roth IRAs are handled differently. The ROTH makeover has also allowed more people to use this as an investment vehicle for the first time. This means that new investors are open to new possibilities.

Changes in 2010

Roth IRAs were previously used to relieve the high tax demands which are a consequence of owning 401k or simple IRA assets. Before the new laws in 2010, however, not everyone could open up a ROTH IRA. 2010 introduced new laws that now allows people with modified adjusted gross income that is greater than 10,000 to contribute to the ROTH funds. Married couples filing separate accounts can now convert ERA assets into ROTH IRAs.

Advantages to the Change

Now that you can access ROTH IRAs, you should be able to reduce the amount of tax liability that they have to pay on the IRA. You should also be able to use ROTH IRAs if you are retired, or if you are part of an employer scheme. This will ensure that you receive more benefits.